CALGARY, ALBERTA- Trican Well Service Ltd. (TSX:TCW) (“Trican” or the “Company”) is pleased to announce its Third Quarter results for 2017. The following news release should be read in conjunction with Management’s Discussion and Analysis, the unaudited interim consolidated financial statements and related notes of Trican for the three and nine months ended September 30, 2017, as well as the Annual Information Form for the year ended December 31, 2016. All of the above documents are available on SEDAR at www.sedar.com.
HIGHLIGHTS
- Consolidated revenue from continuing operations for Q3 2017 was $362.8 million, “an increase of 365% compared to Q3 2016”.
- An increase in fracturing intensity led to significant growth in the volume of proppant pumped this quarter, increasing 143% when compared to the same period last year.
- Adjusted operating income1 for the quarter was $98 million, compared to a $3.2 million adjusted operating loss in Q3 2016.
- Net income of $46.9 million ($0.14 per share – basic), compared to $14.7 million net loss in Q3 2016 (loss of $0.08 per share).
- Exited Q3 2017 with all of our manned equipment fully utilized. We expect full utilization to carry-forward through the rest of 2017 and into the beginning of 2018.
- The Company implemented a NCIB, commencing October 3, 2017. Subsequent to September 30, 2017, the Company has purchased and cancelled 2,208,500 common shares at a weighted average price per share of $4.48.
Utilization of our manned equipment remained at or near full utilization through Q3 2017. The increase in activity and fracturing intensity saw Trican pump substantially more proppant in Q3 2017 relative to both Q2 2017 and Q3 2016. This resulted in the Company generating revenue, adjusted operating income1 and net income, significantly ahead of Q3 2016 levels. The significant increase in all financial and operating metrics were primarily a result of full utilization levels on manned equipment, pricing increases (as disclosed in our second quarter MD&A), cost savings from Canyon-Trican combination synergies, and the positive impact of a full quarter of the integration of Canyon’s operations.
The Company’s short term objectives remain essentially unchanged from the prior quarter:
- Personnel recruitment: increasing our headcount to reactivate idled equipment to service excess customer demand.
- Managing cost inflation: minimizing the effects of increasing pressure pumping activity will have on the Company’s ongoing cost of operating.
- Optimization of our capital structure: debt repayment, credit renegotiation and share repurchases under our NCIB program.
- Driving efficiency: using our scale to further optimize our field operations to improve our clients and our economic returns.
Our strong financial position will allow us to pursue our long term objectives:
- Seek out attractive investment activities that will add both long-term value on a per share basis and diversify our reliance on activity tied directly to drilling and completion activity.